1. The current approach to risk management, which is largely rules-based, is inadequate for managing the risks associated with strategic choices.
2. A new categorization of risk has been proposed that distinguishes between preventable risks and strategy risks.
3. Companies need to anchor discussions about managing risks in their strategy formulation and implementation processes in order to effectively manage both types of risk.
The article provides a comprehensive overview of the current state of risk management and proposes a new framework for understanding and managing different types of risks. The authors provide evidence from field research to support their claims, as well as an example from BP's Deepwater Horizon disaster to illustrate the shortcomings of traditional rules-based approaches to risk management.
The article does not present any counterarguments or explore any potential drawbacks or limitations of the proposed framework. It also does not discuss any potential biases or sources of partiality in the authors' research or conclusions. Additionally, it does not address any possible risks associated with implementing the proposed framework, such as increased costs or decreased efficiency due to additional layers of oversight and control.
In conclusion, while this article provides a useful overview of the current state of risk management and presents a promising new framework for understanding and managing different types of risks, it should be read with caution due to its lack of exploration into potential drawbacks or limitations, as well as its omission of any discussion about potential biases or sources of partiality in the authors' research or conclusions.